Definition
The discipline of planning and coordinating the entire flow of goods, information and money across a supply chain — procurement, production, inventory, transport and distribution — as one system rather than separate silos. Good SCM lowers landed cost and stockouts at the same time, by matching supply decisions to real demand. In South African government procurement the same abbreviation also refers to the regulated Supply Chain Management framework that state entities must follow when buying.
Frequently asked questions
What is Supply Chain Management (SCM)?
The discipline of planning and coordinating the entire flow of goods, information and money across a supply chain — procurement, production, inventory, transport and distribution — as one system rather than separate silos. Good SCM lowers landed cost and stockouts at the same time, by matching supply decisions to real demand. In South African government procurement the same abbreviation also refers to the regulated Supply Chain Management framework that state entities must follow when buying.
Which glossary terms are related to Supply Chain Management (SCM)?
Supply Chain Management (SCM) is a supply chain & warehousing term in the South African import/export industry. Related terms in the same area include 3PL (Third-Party Logistics), 4PL (Fourth-Party Logistics), ABC Analysis, Bonded Logistics, Bonded Warehouse (SOS/OS) — each has its own plain-English definition in the TradeCaravan glossary.